Stage 1 update
Stage 1 pilot is in full swing with all financial institutions who signed up to the EC Pilot having formally subscribed and using the system to process transactions.
At the start of April, Stage 1 will have been in production for over seven months. There have been 354 discharges of mortgage created and 346 of these transactions have been processed through to the Victorian Land Registry.
Release 1.2 was deployed on 14 May 2007 and allows subscribers to create new mortgages through EC.
Stage 2 preparations
Planning and preparation for the next phase of the Victorian Electronic Conveyancing pilot is continuing. Stage 2 will include financial settlement via the Financial Settlement Manager including the calculation and payment of duty to the State Revenue Office.
Rick Dixon (EC Project Manager) and Victorina Pena (EC Implementation Manager)recently visited solicitors and conveyancers in Geelong and Traralgon involved in the Stage 2 pilot. Participants are enthusiastic and looking forward to trialling the system in their geographic regions.
To prepare for Stage 2, a combined meeting between the Financial Institutions Operations Group (FIOG) and the Solicitors and Conveyancers Advisory Forum (SCAF) was held on the 18 April 2007. A demonstration of the stage 2 system was provided to the group. The meeting allowed participants to discuss common and interrelated
approaches and issues.
THe proposed start date is 16 November 2007
Source EC Express
Wednesday, May 30, 2007
Monday, May 28, 2007
Permit debacle may leave owners high and dry
THOUSANDS of building permits issued in Victoria over the past five years are believed to be invalid.
The revelation raises fears that many properties could be illegally occupied, not covered by insurance, and in some cases unlawfully bought or sold.
Industry sources say the discovery — which is expected to cost the Building Commission millions to rectify — is being covered up, with the commission playing down the debacle as a "paperwork issue".
The Age has been told that permits issued for new homes, renovations, sheds, swimming pools and spas in up to 60 local government areas are believed to be invalid, possibly affecting more than 3000 property owners. In some cases, the permits have never been finalised.
Building permits for public housing properties may also be in doubt, sources claim.
The Building Commission announced last week that it had suspended a building inspector for unprofessional conduct, following "an investigation into the alleged issuing of irregular building permits".
A statement claimed his suspension related to 785 permits issued by a now defunct Cranbourne company, Casey Building Services, between September 2005 and August 2006. But sources have told The Age that this was a conservative estimate. The commission alleges that during the 11-month period a building inspector, Geoffrey "John" Chambers, signed-off on several occupancy permits (also known as final certificates) without authorisation.
The permits are required to show that the building works have been completed in accordance with the stamped plans and Australian standards.
They can be signed only by the relevant building surveyor appointed at the project's outset.
But when Casey Building Services' surveyor ceased working at the company after a stroke on September 4, 2005, Mr Chambers is alleged to have signed the documents on his behalf. A local government planning officer raised the alarm after seeing an unfamiliar signature above the surveyor's name.
The commission's investigation into Mr Chambers has also revealed that final permits for many jobs have never been completed.
After his suspension, doubts have been raised within the industry about whether any of the jobs that Mr Chambers approved were ever inspected at all. One source said the debacle was likely to have huge ramifications for the building industry, because without the appropriate paperwork, the properties should not be occupied.
One surveyor, who did not want to be named, expressed concerns that some of the affected properties might have also been illegally sold, considering invalid permits formed part of the section 32. He said this also meant properties might not be covered by insurance if, for instance, the structures fell down.
Mr Chambers was charged by the Building Commission in 2003 for operating a company that provided surveyor services without having a surveyor as a director.
He appointed a surveyor as a director and the matter was dropped.
He was this week served with documents to appear before the Building Practitioner's Board on June 4 for a preliminary hearing. He declined to comment on the allegations.
Building Commissioner Tony Arnel last week assured those involved that they would not be disadvantaged by the mess.
He said the commission would provide householders and builders with free advice, inspections and reports and would meet the costs of issuing new building permits if they were needed. He said the irregularities related to "paperwork issues", and there was no reason to believe that the actual building work was substandard or dangerous.
A commission spokeswoman has since said builders and householders who had dealt with Mr Chambers in good faith were assured the discrepancies would not affect the use of their properties or insurance. A Building Commission hotline has been set up for anyone seeking more information. Phone 1300 360 320
The Age
28 May 2007
Andrea Petrie
The revelation raises fears that many properties could be illegally occupied, not covered by insurance, and in some cases unlawfully bought or sold.
Industry sources say the discovery — which is expected to cost the Building Commission millions to rectify — is being covered up, with the commission playing down the debacle as a "paperwork issue".
The Age has been told that permits issued for new homes, renovations, sheds, swimming pools and spas in up to 60 local government areas are believed to be invalid, possibly affecting more than 3000 property owners. In some cases, the permits have never been finalised.
Building permits for public housing properties may also be in doubt, sources claim.
The Building Commission announced last week that it had suspended a building inspector for unprofessional conduct, following "an investigation into the alleged issuing of irregular building permits".
A statement claimed his suspension related to 785 permits issued by a now defunct Cranbourne company, Casey Building Services, between September 2005 and August 2006. But sources have told The Age that this was a conservative estimate. The commission alleges that during the 11-month period a building inspector, Geoffrey "John" Chambers, signed-off on several occupancy permits (also known as final certificates) without authorisation.
The permits are required to show that the building works have been completed in accordance with the stamped plans and Australian standards.
They can be signed only by the relevant building surveyor appointed at the project's outset.
But when Casey Building Services' surveyor ceased working at the company after a stroke on September 4, 2005, Mr Chambers is alleged to have signed the documents on his behalf. A local government planning officer raised the alarm after seeing an unfamiliar signature above the surveyor's name.
The commission's investigation into Mr Chambers has also revealed that final permits for many jobs have never been completed.
After his suspension, doubts have been raised within the industry about whether any of the jobs that Mr Chambers approved were ever inspected at all. One source said the debacle was likely to have huge ramifications for the building industry, because without the appropriate paperwork, the properties should not be occupied.
One surveyor, who did not want to be named, expressed concerns that some of the affected properties might have also been illegally sold, considering invalid permits formed part of the section 32. He said this also meant properties might not be covered by insurance if, for instance, the structures fell down.
Mr Chambers was charged by the Building Commission in 2003 for operating a company that provided surveyor services without having a surveyor as a director.
He appointed a surveyor as a director and the matter was dropped.
He was this week served with documents to appear before the Building Practitioner's Board on June 4 for a preliminary hearing. He declined to comment on the allegations.
Building Commissioner Tony Arnel last week assured those involved that they would not be disadvantaged by the mess.
He said the commission would provide householders and builders with free advice, inspections and reports and would meet the costs of issuing new building permits if they were needed. He said the irregularities related to "paperwork issues", and there was no reason to believe that the actual building work was substandard or dangerous.
A commission spokeswoman has since said builders and householders who had dealt with Mr Chambers in good faith were assured the discrepancies would not affect the use of their properties or insurance. A Building Commission hotline has been set up for anyone seeking more information. Phone 1300 360 320
The Age
28 May 2007
Andrea Petrie
Saturday, May 26, 2007
92% of consumers use real estate websites to look for property
Shaun Di Gregorio, General Manager–Australia & New Zealand of realestate.com.au offers tips to marketing your property online.
The growth of Perth house prices maybe showing signs of slowing but the number of properties for sale is definitely not. The West Australian market is rich with listings and this can make it tough for sellers to stand out amongst a crowded market.
Standing out from the pack is key when trying to sell property in a competitive market. Choosing an agent who advertises on the Internet is the best starting point. According to Nielsen//NetRatings’ The Australian Property Search Report’ 92% of consumers use real estate websites to look for property and cited them as ‘the most useful resource’.
But remember, not all internet advertising is the same. Make sure your agent advertises on one or more of the most popular sites to maximise exposure. This means a site that reaches local, state, national and international audiences.
Once the property is listed online, encourage your agent to include as much information about the property as possible.
Our research indicates that buyers like to see:
Be honest about the price you are seeking. In a recent survey by realestate.com.au, 92 per cent of people said they would be unlikely to enquire about a property with no price indication. Price on application (P.O.A) is a confusing term that either shows the property is too highly priced, or there is something to hide. Similarly, avoid using broad price ranges like $400-$550,000.
As simple as it sounds, ensure that the complete address is detailed. This is really important for potential interstate and international buyers so they can assess the location’s suitability. It also gives local buyers an opportunity to drive past the property and rule it in or out of the shortlist.
Remember, internet users are information hungry.
Your agent can also take some extra steps to give your property a higher profile. For example, if your agent advertises on realestate.com.au, ask if your home can become a “featured property.” This is an inexpensive option that highlights your property graphically and ensures you receive three to four times the property views.
Database marketing is another good option for ensuring everyone sees your property. Seek out agents that send e-brochures and eAlerts to property seekers who have registered to receive information on news listings. This approach will help target potential buyers who have expressed an interest in a property like yours.
While driving bulk visitors to online listings sounds impressive, it's the quality of these leads that counts. As a vendor, you want to know where the enquiries are coming from. Are most of your enquiries coming from the Internet? Are they coming from the Sale board? Speak to your agent about how you can maximise your on going advertising and the response rate. More importantly, are you spending your advertising dollars where the most enquiries are coming from?
These basic tips are cost effective and really work.
Source realestate.com.au
The growth of Perth house prices maybe showing signs of slowing but the number of properties for sale is definitely not. The West Australian market is rich with listings and this can make it tough for sellers to stand out amongst a crowded market.
Standing out from the pack is key when trying to sell property in a competitive market. Choosing an agent who advertises on the Internet is the best starting point. According to Nielsen//NetRatings’ The Australian Property Search Report’ 92% of consumers use real estate websites to look for property and cited them as ‘the most useful resource’.
But remember, not all internet advertising is the same. Make sure your agent advertises on one or more of the most popular sites to maximise exposure. This means a site that reaches local, state, national and international audiences.
Once the property is listed online, encourage your agent to include as much information about the property as possible.
Our research indicates that buyers like to see:
- detailed descriptions
- as many high quality photos as possible
- accurate floor plans and
- virtual tours
Be honest about the price you are seeking. In a recent survey by realestate.com.au, 92 per cent of people said they would be unlikely to enquire about a property with no price indication. Price on application (P.O.A) is a confusing term that either shows the property is too highly priced, or there is something to hide. Similarly, avoid using broad price ranges like $400-$550,000.
As simple as it sounds, ensure that the complete address is detailed. This is really important for potential interstate and international buyers so they can assess the location’s suitability. It also gives local buyers an opportunity to drive past the property and rule it in or out of the shortlist.
Remember, internet users are information hungry.
Your agent can also take some extra steps to give your property a higher profile. For example, if your agent advertises on realestate.com.au, ask if your home can become a “featured property.” This is an inexpensive option that highlights your property graphically and ensures you receive three to four times the property views.
Database marketing is another good option for ensuring everyone sees your property. Seek out agents that send e-brochures and eAlerts to property seekers who have registered to receive information on news listings. This approach will help target potential buyers who have expressed an interest in a property like yours.
While driving bulk visitors to online listings sounds impressive, it's the quality of these leads that counts. As a vendor, you want to know where the enquiries are coming from. Are most of your enquiries coming from the Internet? Are they coming from the Sale board? Speak to your agent about how you can maximise your on going advertising and the response rate. More importantly, are you spending your advertising dollars where the most enquiries are coming from?
These basic tips are cost effective and really work.
Source realestate.com.au
Question to the House on Electronic Conveyancing
Question Without Notice in the Victorian Legislative Council to the Minister for Planning concerning electronic conveyancing.
24 May 2007 COUNCIL
Mr TEE (Eastern Metropolitan) -- My question is to the Minister for Planning. Can the minister advise the house how the $6 million in funding for electronic conveyancing will position Victoria as a leader in streamlined property transactions, reduce the regulatory burden for business and the community and minimise costs to business?
Hon. J. M. MADDEN (Minister for Planning) -- I thank Mr Tee for his question because I know he has a specific interest in this area. No doubt people in this chamber would appreciate that the budget provided a huge $1.5 billion commitment to maintaining Victoria's competitive business environment. Not only has land tax been slashed but WorkCover premiums have been cut by 10 per cent, providing immediate and obvious benefits for investment in Victoria.
I am delighted to advise the house that this budget provides $6 million to complete the development of and to switch on our new electronic conveyancing system to support faster, more efficient property settlements. Cutting red tape is imperative for business and the community and is a hallmark of this government. Cutting business costs is an integral part of supporting economic growth.
We appreciate that the small business statement released by the Bracks government in August 2006 commits to the reduction of red tape by 25 per cent over the next five years. This government has consistently stripped away layers of unnecessary and time-wasting processes to allow Victorian businesses to remain competitive.
The introduction of electronic conveyancing for property transactions is part of our very clear intention to cut red tape in business.
It puts Victoria at the forefront of the Australian states and indeed makes it a world leader in financial property settlement and lodgement of land transfers and mortgages.
Financial institutions like Westpac, ANZ, Commonwealth Bank, National Australia Bank, Macquarie Bank and Bendigo Bank are already using mortgage transactions as part of the electronic conveyancing system.
Even greater benefits will emerge in stage 2, and that will do away with the paper shuffle that often goes on with these transactions where a number of parties have to come together and shuffle papers in order to settle a transaction. This will mean a saving on average of up to $395 per four-party settlement on an average saving of up to $108 for each vendor and purchaser.
That might not seem a lot on each transaction, President, but let me reinforce that more than $70 million of annual savings for the industry and community are forecast from this initiative. The Bracks government recognises the challenges of the future, and we are delivering on our promises to reduce cost to business and invest in services that matter to Victorian businesses -- and all that will flow on to jobs and make Victoria a great place not only to do business but to live, work and raise a family.
Extract from Hansard
24 May 2007 COUNCIL
Mr TEE (Eastern Metropolitan) -- My question is to the Minister for Planning. Can the minister advise the house how the $6 million in funding for electronic conveyancing will position Victoria as a leader in streamlined property transactions, reduce the regulatory burden for business and the community and minimise costs to business?
Hon. J. M. MADDEN (Minister for Planning) -- I thank Mr Tee for his question because I know he has a specific interest in this area. No doubt people in this chamber would appreciate that the budget provided a huge $1.5 billion commitment to maintaining Victoria's competitive business environment. Not only has land tax been slashed but WorkCover premiums have been cut by 10 per cent, providing immediate and obvious benefits for investment in Victoria.
I am delighted to advise the house that this budget provides $6 million to complete the development of and to switch on our new electronic conveyancing system to support faster, more efficient property settlements. Cutting red tape is imperative for business and the community and is a hallmark of this government. Cutting business costs is an integral part of supporting economic growth.
We appreciate that the small business statement released by the Bracks government in August 2006 commits to the reduction of red tape by 25 per cent over the next five years. This government has consistently stripped away layers of unnecessary and time-wasting processes to allow Victorian businesses to remain competitive.
The introduction of electronic conveyancing for property transactions is part of our very clear intention to cut red tape in business.
It puts Victoria at the forefront of the Australian states and indeed makes it a world leader in financial property settlement and lodgement of land transfers and mortgages.
Financial institutions like Westpac, ANZ, Commonwealth Bank, National Australia Bank, Macquarie Bank and Bendigo Bank are already using mortgage transactions as part of the electronic conveyancing system.
Even greater benefits will emerge in stage 2, and that will do away with the paper shuffle that often goes on with these transactions where a number of parties have to come together and shuffle papers in order to settle a transaction. This will mean a saving on average of up to $395 per four-party settlement on an average saving of up to $108 for each vendor and purchaser.
That might not seem a lot on each transaction, President, but let me reinforce that more than $70 million of annual savings for the industry and community are forecast from this initiative. The Bracks government recognises the challenges of the future, and we are delivering on our promises to reduce cost to business and invest in services that matter to Victorian businesses -- and all that will flow on to jobs and make Victoria a great place not only to do business but to live, work and raise a family.
Extract from Hansard
Wednesday, May 23, 2007
ANZ to end paper loan trail
ANZ customers will be able to track their home loan applications online from initial form-filling to settlement of funds in their accounts as the bank becomes the first Australian major to take its mortgage operations completely electronic.
The technology will slash the 4.7million pieces of paper a year generated as part of ANZ's credit approval process.
The $70 million investment will cut the time taken to process a loan from up to a week to two days, and in theory will avoid the need for two million telephone inquiries a year relating to the status of loan applications.
Once the process is automated, a "small" proportion of about 900 back-office mortgage jobs would be sent to Bangalore in India, ANZ mortgages managing director Michael Rowland said yesterday.
The system involves the use of imaging technology, rather than paper, to digitise the mortgage process. But unlike low-doc loans, supporting documentation such as proof of earnings will still be required.
Mr Rowland said the technology had been successfully introduced by banks offshore, which were keen to reduce their costs, add to their range of products and make the mortgage approval process more efficient.
"This is a big change, because fundamentally the system now is paper-based," Mr Rowland said.
"If we don't do this, we won't be competitive; our profit margins continue to decline in mortgages, which is close to being the most competitive part of retail banking.
"International players like GE, BankWest and ING are playing very heavily in this space," he said. ANZ would be the only bank of the Big Four to fully automate all its mortgage processing.
This would enable work currently performed in Australia to be done offshore.
There are 1500 people employed in ANZ's mortgage area. The final number of jobs to be sent offshore was yet to be determined, Mr Rowland said, but the employees affected would be retrained and redeployed.
A number of big corporations with large customer bases, including all the major banks except the Commonwealth, are "offshoring" jobs, despite a vigorous campaign by the Finance Sector Union to keep the work at home.
Unlike business rivals that outsource to specialist firms overseas, ANZ has a company-owned facility in Bangalore. There the bank employs 1700 Indians on the same terms and conditions, but significantly less pay, than Australian workers would receive.
The Australian - news.com.au
By Richard Gluyas
May 15, 2007
This is huge news. The banking and mortgage processing system has been crying out for news like this.
A few questions
But $70M. Does it really cost this much to implement change?
Back end settlements has been and still is the bane of the conveyancing industry. The ANZ initiative is long overdue but welcome announcement. I for one would refer more business to the ANZ and I would expect that brokers would also welcome the change and refer more loans as a result. As the ANZ claims it reduces the bank end cost but I would expect ANZ's market share will increase as well. I trust the other banks will follow.
The technology will slash the 4.7million pieces of paper a year generated as part of ANZ's credit approval process.
The $70 million investment will cut the time taken to process a loan from up to a week to two days, and in theory will avoid the need for two million telephone inquiries a year relating to the status of loan applications.
Once the process is automated, a "small" proportion of about 900 back-office mortgage jobs would be sent to Bangalore in India, ANZ mortgages managing director Michael Rowland said yesterday.
The system involves the use of imaging technology, rather than paper, to digitise the mortgage process. But unlike low-doc loans, supporting documentation such as proof of earnings will still be required.
Mr Rowland said the technology had been successfully introduced by banks offshore, which were keen to reduce their costs, add to their range of products and make the mortgage approval process more efficient.
"This is a big change, because fundamentally the system now is paper-based," Mr Rowland said.
"If we don't do this, we won't be competitive; our profit margins continue to decline in mortgages, which is close to being the most competitive part of retail banking.
"International players like GE, BankWest and ING are playing very heavily in this space," he said. ANZ would be the only bank of the Big Four to fully automate all its mortgage processing.
This would enable work currently performed in Australia to be done offshore.
There are 1500 people employed in ANZ's mortgage area. The final number of jobs to be sent offshore was yet to be determined, Mr Rowland said, but the employees affected would be retrained and redeployed.
A number of big corporations with large customer bases, including all the major banks except the Commonwealth, are "offshoring" jobs, despite a vigorous campaign by the Finance Sector Union to keep the work at home.
Unlike business rivals that outsource to specialist firms overseas, ANZ has a company-owned facility in Bangalore. There the bank employs 1700 Indians on the same terms and conditions, but significantly less pay, than Australian workers would receive.
The Australian - news.com.au
By Richard Gluyas
May 15, 2007
This is huge news. The banking and mortgage processing system has been crying out for news like this.
A few questions
- when will this be implemented?
- will the customer's legal representative be part of the loop?
- what about introducing a digital loan?
But $70M. Does it really cost this much to implement change?
Back end settlements has been and still is the bane of the conveyancing industry. The ANZ initiative is long overdue but welcome announcement. I for one would refer more business to the ANZ and I would expect that brokers would also welcome the change and refer more loans as a result. As the ANZ claims it reduces the bank end cost but I would expect ANZ's market share will increase as well. I trust the other banks will follow.
Friday, May 18, 2007
South Australia - not to be left behind
Readiness Planning for NECS
Land Services Group of the Department for Administrative and Information Services has undertaken extensive consultation with stakeholders on the concept of electronic conveyancing in South Australia. This consultation undertaken as part of the land administration reform program ATLAS culminated in the publishing of a “Proposal for Digital Conveyancing in South Australia” in late 2004. Key actions identified in the proposal as necessary prior to the introduction of Electronic Conveyancing were:
* The removal of the Duplicate CT
* Implementation of Priority Notices
* Reforms to witnessing and Identification procedures
* Implementation of Dual Certification
* Introduction of Agency Agreements
Legislative changes to the Real Property Act to allow for electronic conveyancing have also been identified and forwarded for drafting.
This item appeared on the NECS pages
Land Services Group of the Department for Administrative and Information Services has undertaken extensive consultation with stakeholders on the concept of electronic conveyancing in South Australia. This consultation undertaken as part of the land administration reform program ATLAS culminated in the publishing of a “Proposal for Digital Conveyancing in South Australia” in late 2004. Key actions identified in the proposal as necessary prior to the introduction of Electronic Conveyancing were:
* The removal of the Duplicate CT
* Implementation of Priority Notices
* Reforms to witnessing and Identification procedures
* Implementation of Dual Certification
* Introduction of Agency Agreements
Legislative changes to the Real Property Act to allow for electronic conveyancing have also been identified and forwarded for drafting.
This item appeared on the NECS pages
June 1 - UK HIPS going live including Energy Performance Certificates
May 17. London House Commons Debate on HIPs, Housing Minister Yvette Cooper strongly defended HIPs and the importance of including Energy Performance Certificates (EPCs), saying they are vital in helping to tackle climate change while the packs give house-buyers more information upfront about their new home and cut costs for first-time buyers.
Yvette Cooper said:
“The only new document that is being added to the process is the Energy Performance Certificate. The certificates will give people’s homes an energy rating for the first time. They will give people not only the rating on their home but information on what they can do about it — what their fuel bills are likely to be and how they can cut them.
“The remaining elements of HIPs are the legal and search documents that one already needs when buying and selling a home, but they will be gathered at the beginning rather than the end of the process, to speed things up and improve competition. For many of us, buying and selling a home is a baffling process. There can be huge delays between offer and exchange. In complex chains, that can mean that sales fall through. Most people will struggle to keep track of what services they are getting and paying for. HIPs will make the process much clearer and faster”.
There's a message here for Victoria - surely we need to be debating the introduction of such a measure, both energy and water savings audits.
Yvette Cooper said:
“The only new document that is being added to the process is the Energy Performance Certificate. The certificates will give people’s homes an energy rating for the first time. They will give people not only the rating on their home but information on what they can do about it — what their fuel bills are likely to be and how they can cut them.
“The remaining elements of HIPs are the legal and search documents that one already needs when buying and selling a home, but they will be gathered at the beginning rather than the end of the process, to speed things up and improve competition. For many of us, buying and selling a home is a baffling process. There can be huge delays between offer and exchange. In complex chains, that can mean that sales fall through. Most people will struggle to keep track of what services they are getting and paying for. HIPs will make the process much clearer and faster”.
There's a message here for Victoria - surely we need to be debating the introduction of such a measure, both energy and water savings audits.
Wednesday, May 16, 2007
Iacocca - Where have all the leaders gone?
Referring to the mess in US politics, Iacocca asks "Why are we in this mess?"
How did we end up with this crowd in Washington? Well, we voted for them—or at least some of us did. But I'll tell you what we didn't do. We didn't agree to suspend the Constitution. We didn't agree to stop asking questions or demanding answers. Some of us are sick and tired of people who call free speech treason. Where I come from that's a dictatorship, not a democracy.
And don't tell me it's all the fault of right-wing Republicans or liberal Democrats. That's an intellectually lazy argument, and it's part of the reason we're in this stew. We're not just a nation of factions. We're a people. We share common principles and ideals. And we rise and fall together.
Where are the voices of leaders who can inspire us to action and make us stand taller? What happened to the strong and resolute party of Lincoln? What happened to the courageous, populist party of FDR and Truman? There was a time in this country when the voices of great leaders lifted us up and made us want to do better. Where have all the leaders gone?
The Test of a Leader
I've never been Commander in Chief, but I've been a CEO. I understand a few things about leadership at the top. I've figured out nine points—not ten (I don't want people accusing me of thinking I'm Moses). I call them the "Nine Cs of Leadership." They're not fancy or complicated. Just clear, obvious qualities that every true leader should have. We should look at how the current administration stacks up. Like it or not, this crew is going to be around until January 2009. Maybe we can learn something before we go to the polls in 2008. Then let's be sure we use the leadership test to screen the candidates who say they want to run the country. It's up to us to choose wisely.
So, here's my C list:
A leader has to show CURIOSITY. He has to listen to people outside of the "Yes, sir" crowd in his inner circle. He has to read voraciously, because the world is a big, complicated place. George W. Bush brags about never reading a newspaper. "I just scan the headlines," he says. Am I hearing this right? He's the President of the United States and he never reads a newspaper? Thomas Jefferson once said, "Were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate for a moment to prefer the latter." Bush disagrees. As long as he gets his daily hour in the gym, with Fox News piped through the sound system, he's ready to go.
If a leader never steps outside his comfort zone to hear different ideas, he grows stale. If he doesn't put his beliefs to the test, how does he know he's right? The inability to listen is a form of arrogance. It means either you think you already know it all, or you just don't care. Before the 2006 election, George Bush made a big point of saying he didn't listen to the polls. Yeah, that's what they all say when the polls stink. But maybe he should have listened, because 70 percent of the people were saying he was on the wrong track. It took a "thumping" on election day to wake him up, but even then you got the feeling he wasn't listening so much as he was calculating how to do a better job of convincing everyone he was right.
A leader has to be CREATIVE, go out on a limb, be willing to try something different. You know, think outside the box. George Bush prides himself on never changing, even as the world around him is spinning out of control. God forbid someone should accuse him of flip-flopping. There's a disturbingly messianic fervor to his certainty. Senator Joe Biden recalled a conversation he had with Bush a few months after our troops marched into Baghdad. Joe was in the Oval Office outlining his concerns to the President—the explosive mix of Shiite and Sunni, the disbanded Iraqi army, the problems securing the oil fields. "The President was serene," Joe recalled. "He told me he was sure that we were on the right course and that all would be well. 'Mr. President,' I finally said, 'how can you be so sure when you don't yet know all the facts?'" Bush then reached over and put a steadying hand on Joe's shoulder. "My instincts," he said. "My instincts." Joe was flabbergasted. He told Bush, "Mr. President, your instincts aren't good enough." Joe Biden sure didn't think the matter was settled. And, as we all know now, it wasn't.
Leadership is all about managing change—whether you're leading a company or leading a country. Things change, and you get creative. You adapt. Maybe Bush was absent the day they covered that at Harvard Business School.
A leader has to COMMUNICATE. I'm not talking about running off at the mouth or spouting sound bites. I'm talking about facing reality and telling the truth. Nobody in the current administration seems to know how to talk straight anymore. Instead, they spend most of their time trying to convince us that things are not really as bad as they seem. I don't know if it's denial or dishonesty, but it can start to drive you crazy after a while. Communication has to start with telling the truth, even when it's painful. The war in Iraq has been, among other things, a grand failure of communication. Bush is like the boy who didn't cry wolf when the wolf was at the door. After years of being told that all is well, even as the casualties and chaos mount, we've stopped listening to him.
A leader has to be a person of CHARACTER. That means knowing the difference between right and wrong and having the guts to do the right thing. Abraham Lincoln once said, "If you want to test a man's character, give him power." George Bush has a lot of power. What does it say about his character? Bush has shown a willingness to take bold action on the world stage because he has the power, but he shows little regard for the grievous consequences. He has sent our troops (not to mention hundreds of thousands of innocent Iraqi citizens) to their deaths—for what? To build our oil reserves? To avenge his daddy because Saddam Hussein once tried to have him killed? To show his daddy he's tougher? The motivations behind the war in Iraq are questionable, and the execution of the war has been a disaster. A man of character does not ask a single soldier to die for a failed policy.
A leader must have COURAGE. I'm talking about balls. (That even goes for female leaders.) Swagger isn't courage. Tough talk isn't courage. George Bush comes from a blue-blooded Connecticut family, but he likes to talk like a cowboy. You know, My gun is bigger than your gun. Courage in the twenty-first century doesn't mean posturing and bravado. Courage is a commitment to sit down at the negotiating table and talk.
If you're a politician, courage means taking a position even when you know it will cost you votes. Bush can't even make a public appearance unless the audience has been handpicked and sanitized. He did a series of so-called town hall meetings last year, in auditoriums packed with his most devoted fans. The questions were all softballs.
To be a leader you've got to have CONVICTION — a fire in your belly. You've got to have passion. You've got to really want to get something done. How do you measure fire in the belly? Bush has set the all-time record for number of vacation days taken by a U.S. President—four hundred and counting. He'd rather clear brush on his ranch than immerse himself in the business of governing. He even told an interviewer that the high point of his presidency so far was catching a seven-and-a-half-pound perch in his hand-stocked lake.
It's no better on Capitol Hill. Congress was in session only ninety-seven days in 2006. That's eleven days less than the record set in 1948, when President Harry Truman coined the term do-nothing Congress. Most people would expect to be fired if they worked so little and had nothing to show for it. But Congress managed to find the time to vote itself a raise. Now, that's not leadership.
A leader should have CHARISMA. I'm not talking about being flashy. Charisma is the quality that makes people want to follow you. It's the ability to inspire. People follow a leader because they trust him. That's my definition of charisma. Maybe George Bush is a great guy to hang out with at a barbecue or a ball game. But put him at a global summit where the future of our planet is at stake, and he doesn't look very presidential. Those frat-boy pranks and the kidding around he enjoys so much don't go over that well with world leaders. Just ask German Chancellor Angela Merkel, who received an unwelcome shoulder massage from our President at a G-8 Summit. When he came up behind her and started squeezing, I thought she was going to go right through the roof.
A leader has to be COMPETENT. That seems obvious, doesn't it? You've got to know what you're doing. More important than that, you've got to surround yourself with people who know what they're doing. Bush brags about being our first MBA President. Does that make him competent? Well, let's see. Thanks to our first MBA President, we've got the largest deficit in history, Social Security is on life support, and we've run up a half-a-trillion-dollar price tag (so far) in Iraq. And that's just for starters. A leader has to be a problem solver, and the biggest problems we face as a nation seem to be on the back burner.
You can't be a leader if you don't have COMMON SENSE. I call this Charlie Beacham's rule. When I was a young guy just starting out in the car business, one of my first jobs was as Ford's zone manager in Wilkes-Barre, Pennsylvania. My boss was a guy named Charlie Beacham, who was the East Coast regional manager. Charlie was a big Southerner, with a warm drawl, a huge smile, and a core of steel. Charlie used to tell me, "Remember, Lee, the only thing you've got going for you as a human being is your ability to reason and your common sense. If you don't know a dip of horseshit from a dip of vanilla ice cream, you'll never make it." George Bush doesn't have common sense. He just has a lot of sound bites. You know—Mr.they'll-welcome-us-as-liberators-no-child-left-behind-heck-of-a-job-Brownie-mission-accomplished Bush.
Former President Bill Clinton once said, "I grew up in an alcoholic home. I spent half my childhood trying to get into the reality-based world—and I like it here."
I think our current President should visit the real world once in a while.
The Biggest C is Crisis
Leaders are made, not born. Leadership is forged in times of crisis. It's easy to sit there with your feet up on the desk and talk theory. Or send someone else's kids off to war when you've never seen a battlefield yourself. It's another thing to lead when your world comes tumbling down.
On September 11, 2001, we needed a strong leader more than any other time in our history. We needed a steady hand to guide us out of the ashes. Where was George Bush? He was reading a story about a pet goat to kids in Florida when he heard about the attacks. He kept sitting there for twenty minutes with a baffled look on his face. It's all on tape. You can see it for yourself. Then, instead of taking the quickest route back to Washington and immediately going on the air to reassure the panicked people of this country, he decided it wasn't safe to return to the White House. He basically went into hiding for the day—and he told Vice President Dick Cheney to stay put in his bunker. We were all frozen in front of our TVs, scared out of our wits, waiting for our leaders to tell us that we were going to be okay, and there was nobody home. It took Bush a couple of days to get his bearings and devise the right photo op at Ground Zero.
That was George Bush's moment of truth, and he was paralyzed. And what did he do when he'd regained his composure? He led us down the road to Iraq—a road his own father had considered disastrous when he was President. But Bush didn't listen to Daddy. He listened to a higher father. He prides himself on being faith based, not reality based. If that doesn't scare the crap out of you, I don't know what will.
A Hell of a Mess
So here's where we stand. We're immersed in a bloody war with no plan for winning and no plan for leaving. We're running the biggest deficit in the history of the country. We're losing the manufacturing edge to Asia, while our once-great companies are getting slaughtered by health care costs. Gas prices are skyrocketing, and nobody in power has a coherent energy policy. Our schools are in trouble. Our borders are like sieves. The middle class is being squeezed every which way. These are times that cry out for leadership.
But when you look around, you've got to ask: "Where have all the leaders gone?" Where are the curious, creative communicators? Where are the people of character, courage, conviction, competence, and common sense? I may be a sucker for alliteration, but I think you get the point.
Name me a leader who has a better idea for homeland security than making us take off our shoes in airports and throw away our shampoo? We've spent billions of dollars building a huge new bureaucracy, and all we know how to do is react to things that have already happened.
Name me one leader who emerged from the crisis of Hurricane Katrina. Congress has yet to spend a single day evaluating the response to the hurricane, or demanding accountability for the decisions that were made in the crucial hours after the storm. Everyone's hunkering down, fingers crossed, hoping it doesn't happen again. Now, that's just crazy. Storms happen. Deal with it. Make a plan. Figure out what you're going to do the next time.
Name me an industry leader who is thinking creatively about how we can restore our competitive edge in manufacturing. Who would have believed that there could ever be a time when "the Big Three" referred to Japanese car companies? How did this happen—and more important, what are we going to do about it?
Name me a government leader who can articulate a plan for paying down the debt, or solving the energy crisis, or managing the health care problem. The silence is deafening. But these are the crises that are eating away at our country and milking the middle class dry.
I have news for the gang in Congress. We didn't elect you to sit on your asses and do nothing and remain silent while our democracy is being hijacked and our greatness is being replaced with mediocrity. What is everybody so afraid of? That some bobblehead on Fox News will call them a name? Give me a break. Why don't you guys show some spine for a change?
Had Enough?
Hey, I'm not trying to be the voice of gloom and doom here. I'm trying to light a fire. I'm speaking out because I have hope. I believe in America. In my lifetime I've had the privilege of living through some of America's greatest moments. I've also experienced some of our worst crises—the Great Depression, World War II, the Korean War, the Kennedy assassination, the Vietnam War, the 1970s oil crisis, and the struggles of recent years culminating with 9/11. If I've learned one thing, it's this: You don't get anywhere by standing on the sidelines waiting for somebody else to take action. Whether it's building a better car or building a better future for our children, we all have a role to play. That's the challenge I'm raising in this book. It's a call to action for people who, like me, believe in America. It's not too late, but it's getting pretty close. So let's shake off the horseshit and go to work. Let's tell 'em all we've had enough.
Excerpted from Where Have All the Leaders Gone?. Copyright © 2007 by Lee Iacocca. All rights reserved.
I haven't read the book, but Iacocca certainly is pissed off with the current leadership in the US, both GWB and Congress. In this excerpt he is letting off steam. But as for solutions I guess he is suggesting you need leadership and leadership that follows Lee's gospel of the 9Cs. As for the US it is stuck with GWB til Jan09.
How did we end up with this crowd in Washington? Well, we voted for them—or at least some of us did. But I'll tell you what we didn't do. We didn't agree to suspend the Constitution. We didn't agree to stop asking questions or demanding answers. Some of us are sick and tired of people who call free speech treason. Where I come from that's a dictatorship, not a democracy.
And don't tell me it's all the fault of right-wing Republicans or liberal Democrats. That's an intellectually lazy argument, and it's part of the reason we're in this stew. We're not just a nation of factions. We're a people. We share common principles and ideals. And we rise and fall together.
Where are the voices of leaders who can inspire us to action and make us stand taller? What happened to the strong and resolute party of Lincoln? What happened to the courageous, populist party of FDR and Truman? There was a time in this country when the voices of great leaders lifted us up and made us want to do better. Where have all the leaders gone?
The Test of a Leader
I've never been Commander in Chief, but I've been a CEO. I understand a few things about leadership at the top. I've figured out nine points—not ten (I don't want people accusing me of thinking I'm Moses). I call them the "Nine Cs of Leadership." They're not fancy or complicated. Just clear, obvious qualities that every true leader should have. We should look at how the current administration stacks up. Like it or not, this crew is going to be around until January 2009. Maybe we can learn something before we go to the polls in 2008. Then let's be sure we use the leadership test to screen the candidates who say they want to run the country. It's up to us to choose wisely.
So, here's my C list:
A leader has to show CURIOSITY. He has to listen to people outside of the "Yes, sir" crowd in his inner circle. He has to read voraciously, because the world is a big, complicated place. George W. Bush brags about never reading a newspaper. "I just scan the headlines," he says. Am I hearing this right? He's the President of the United States and he never reads a newspaper? Thomas Jefferson once said, "Were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate for a moment to prefer the latter." Bush disagrees. As long as he gets his daily hour in the gym, with Fox News piped through the sound system, he's ready to go.
If a leader never steps outside his comfort zone to hear different ideas, he grows stale. If he doesn't put his beliefs to the test, how does he know he's right? The inability to listen is a form of arrogance. It means either you think you already know it all, or you just don't care. Before the 2006 election, George Bush made a big point of saying he didn't listen to the polls. Yeah, that's what they all say when the polls stink. But maybe he should have listened, because 70 percent of the people were saying he was on the wrong track. It took a "thumping" on election day to wake him up, but even then you got the feeling he wasn't listening so much as he was calculating how to do a better job of convincing everyone he was right.
A leader has to be CREATIVE, go out on a limb, be willing to try something different. You know, think outside the box. George Bush prides himself on never changing, even as the world around him is spinning out of control. God forbid someone should accuse him of flip-flopping. There's a disturbingly messianic fervor to his certainty. Senator Joe Biden recalled a conversation he had with Bush a few months after our troops marched into Baghdad. Joe was in the Oval Office outlining his concerns to the President—the explosive mix of Shiite and Sunni, the disbanded Iraqi army, the problems securing the oil fields. "The President was serene," Joe recalled. "He told me he was sure that we were on the right course and that all would be well. 'Mr. President,' I finally said, 'how can you be so sure when you don't yet know all the facts?'" Bush then reached over and put a steadying hand on Joe's shoulder. "My instincts," he said. "My instincts." Joe was flabbergasted. He told Bush, "Mr. President, your instincts aren't good enough." Joe Biden sure didn't think the matter was settled. And, as we all know now, it wasn't.
Leadership is all about managing change—whether you're leading a company or leading a country. Things change, and you get creative. You adapt. Maybe Bush was absent the day they covered that at Harvard Business School.
A leader has to COMMUNICATE. I'm not talking about running off at the mouth or spouting sound bites. I'm talking about facing reality and telling the truth. Nobody in the current administration seems to know how to talk straight anymore. Instead, they spend most of their time trying to convince us that things are not really as bad as they seem. I don't know if it's denial or dishonesty, but it can start to drive you crazy after a while. Communication has to start with telling the truth, even when it's painful. The war in Iraq has been, among other things, a grand failure of communication. Bush is like the boy who didn't cry wolf when the wolf was at the door. After years of being told that all is well, even as the casualties and chaos mount, we've stopped listening to him.
A leader has to be a person of CHARACTER. That means knowing the difference between right and wrong and having the guts to do the right thing. Abraham Lincoln once said, "If you want to test a man's character, give him power." George Bush has a lot of power. What does it say about his character? Bush has shown a willingness to take bold action on the world stage because he has the power, but he shows little regard for the grievous consequences. He has sent our troops (not to mention hundreds of thousands of innocent Iraqi citizens) to their deaths—for what? To build our oil reserves? To avenge his daddy because Saddam Hussein once tried to have him killed? To show his daddy he's tougher? The motivations behind the war in Iraq are questionable, and the execution of the war has been a disaster. A man of character does not ask a single soldier to die for a failed policy.
A leader must have COURAGE. I'm talking about balls. (That even goes for female leaders.) Swagger isn't courage. Tough talk isn't courage. George Bush comes from a blue-blooded Connecticut family, but he likes to talk like a cowboy. You know, My gun is bigger than your gun. Courage in the twenty-first century doesn't mean posturing and bravado. Courage is a commitment to sit down at the negotiating table and talk.
If you're a politician, courage means taking a position even when you know it will cost you votes. Bush can't even make a public appearance unless the audience has been handpicked and sanitized. He did a series of so-called town hall meetings last year, in auditoriums packed with his most devoted fans. The questions were all softballs.
To be a leader you've got to have CONVICTION — a fire in your belly. You've got to have passion. You've got to really want to get something done. How do you measure fire in the belly? Bush has set the all-time record for number of vacation days taken by a U.S. President—four hundred and counting. He'd rather clear brush on his ranch than immerse himself in the business of governing. He even told an interviewer that the high point of his presidency so far was catching a seven-and-a-half-pound perch in his hand-stocked lake.
It's no better on Capitol Hill. Congress was in session only ninety-seven days in 2006. That's eleven days less than the record set in 1948, when President Harry Truman coined the term do-nothing Congress. Most people would expect to be fired if they worked so little and had nothing to show for it. But Congress managed to find the time to vote itself a raise. Now, that's not leadership.
A leader should have CHARISMA. I'm not talking about being flashy. Charisma is the quality that makes people want to follow you. It's the ability to inspire. People follow a leader because they trust him. That's my definition of charisma. Maybe George Bush is a great guy to hang out with at a barbecue or a ball game. But put him at a global summit where the future of our planet is at stake, and he doesn't look very presidential. Those frat-boy pranks and the kidding around he enjoys so much don't go over that well with world leaders. Just ask German Chancellor Angela Merkel, who received an unwelcome shoulder massage from our President at a G-8 Summit. When he came up behind her and started squeezing, I thought she was going to go right through the roof.
A leader has to be COMPETENT. That seems obvious, doesn't it? You've got to know what you're doing. More important than that, you've got to surround yourself with people who know what they're doing. Bush brags about being our first MBA President. Does that make him competent? Well, let's see. Thanks to our first MBA President, we've got the largest deficit in history, Social Security is on life support, and we've run up a half-a-trillion-dollar price tag (so far) in Iraq. And that's just for starters. A leader has to be a problem solver, and the biggest problems we face as a nation seem to be on the back burner.
You can't be a leader if you don't have COMMON SENSE. I call this Charlie Beacham's rule. When I was a young guy just starting out in the car business, one of my first jobs was as Ford's zone manager in Wilkes-Barre, Pennsylvania. My boss was a guy named Charlie Beacham, who was the East Coast regional manager. Charlie was a big Southerner, with a warm drawl, a huge smile, and a core of steel. Charlie used to tell me, "Remember, Lee, the only thing you've got going for you as a human being is your ability to reason and your common sense. If you don't know a dip of horseshit from a dip of vanilla ice cream, you'll never make it." George Bush doesn't have common sense. He just has a lot of sound bites. You know—Mr.they'll-welcome-us-as-liberators-no-child-left-behind-heck-of-a-job-Brownie-mission-accomplished Bush.
Former President Bill Clinton once said, "I grew up in an alcoholic home. I spent half my childhood trying to get into the reality-based world—and I like it here."
I think our current President should visit the real world once in a while.
The Biggest C is Crisis
Leaders are made, not born. Leadership is forged in times of crisis. It's easy to sit there with your feet up on the desk and talk theory. Or send someone else's kids off to war when you've never seen a battlefield yourself. It's another thing to lead when your world comes tumbling down.
On September 11, 2001, we needed a strong leader more than any other time in our history. We needed a steady hand to guide us out of the ashes. Where was George Bush? He was reading a story about a pet goat to kids in Florida when he heard about the attacks. He kept sitting there for twenty minutes with a baffled look on his face. It's all on tape. You can see it for yourself. Then, instead of taking the quickest route back to Washington and immediately going on the air to reassure the panicked people of this country, he decided it wasn't safe to return to the White House. He basically went into hiding for the day—and he told Vice President Dick Cheney to stay put in his bunker. We were all frozen in front of our TVs, scared out of our wits, waiting for our leaders to tell us that we were going to be okay, and there was nobody home. It took Bush a couple of days to get his bearings and devise the right photo op at Ground Zero.
That was George Bush's moment of truth, and he was paralyzed. And what did he do when he'd regained his composure? He led us down the road to Iraq—a road his own father had considered disastrous when he was President. But Bush didn't listen to Daddy. He listened to a higher father. He prides himself on being faith based, not reality based. If that doesn't scare the crap out of you, I don't know what will.
A Hell of a Mess
So here's where we stand. We're immersed in a bloody war with no plan for winning and no plan for leaving. We're running the biggest deficit in the history of the country. We're losing the manufacturing edge to Asia, while our once-great companies are getting slaughtered by health care costs. Gas prices are skyrocketing, and nobody in power has a coherent energy policy. Our schools are in trouble. Our borders are like sieves. The middle class is being squeezed every which way. These are times that cry out for leadership.
But when you look around, you've got to ask: "Where have all the leaders gone?" Where are the curious, creative communicators? Where are the people of character, courage, conviction, competence, and common sense? I may be a sucker for alliteration, but I think you get the point.
Name me a leader who has a better idea for homeland security than making us take off our shoes in airports and throw away our shampoo? We've spent billions of dollars building a huge new bureaucracy, and all we know how to do is react to things that have already happened.
Name me one leader who emerged from the crisis of Hurricane Katrina. Congress has yet to spend a single day evaluating the response to the hurricane, or demanding accountability for the decisions that were made in the crucial hours after the storm. Everyone's hunkering down, fingers crossed, hoping it doesn't happen again. Now, that's just crazy. Storms happen. Deal with it. Make a plan. Figure out what you're going to do the next time.
Name me an industry leader who is thinking creatively about how we can restore our competitive edge in manufacturing. Who would have believed that there could ever be a time when "the Big Three" referred to Japanese car companies? How did this happen—and more important, what are we going to do about it?
Name me a government leader who can articulate a plan for paying down the debt, or solving the energy crisis, or managing the health care problem. The silence is deafening. But these are the crises that are eating away at our country and milking the middle class dry.
I have news for the gang in Congress. We didn't elect you to sit on your asses and do nothing and remain silent while our democracy is being hijacked and our greatness is being replaced with mediocrity. What is everybody so afraid of? That some bobblehead on Fox News will call them a name? Give me a break. Why don't you guys show some spine for a change?
Had Enough?
Hey, I'm not trying to be the voice of gloom and doom here. I'm trying to light a fire. I'm speaking out because I have hope. I believe in America. In my lifetime I've had the privilege of living through some of America's greatest moments. I've also experienced some of our worst crises—the Great Depression, World War II, the Korean War, the Kennedy assassination, the Vietnam War, the 1970s oil crisis, and the struggles of recent years culminating with 9/11. If I've learned one thing, it's this: You don't get anywhere by standing on the sidelines waiting for somebody else to take action. Whether it's building a better car or building a better future for our children, we all have a role to play. That's the challenge I'm raising in this book. It's a call to action for people who, like me, believe in America. It's not too late, but it's getting pretty close. So let's shake off the horseshit and go to work. Let's tell 'em all we've had enough.
Excerpted from Where Have All the Leaders Gone?. Copyright © 2007 by Lee Iacocca. All rights reserved.
I haven't read the book, but Iacocca certainly is pissed off with the current leadership in the US, both GWB and Congress. In this excerpt he is letting off steam. But as for solutions I guess he is suggesting you need leadership and leadership that follows Lee's gospel of the 9Cs. As for the US it is stuck with GWB til Jan09.
Tuesday, May 15, 2007
ANZ looks to back office savings in mortgage processing
AN industry-wide crunch in home-lending profit margins has led ANZ to embark on a three-year program to automate its mortgage processing operations.
The $70 million program will enable ANZ to offshore a "small" proportion of around 900 back-office jobs in the mortgage area to Bangalore in India, where the bank has its own facility.
In the half-year to March, ANZ gave up four basis points of home-lending margin at a cost to group profit of $40 million.
"We have to get a lot of that back," ANZ managing director mortgages Michael Rowland said.
"We're still working through how much we will get back, but there's a reasonable amount of cost savings in it."
As lending volume turns down and competition intensifies, the big banks are increasingly looking to offshoring and big-ticket information technology projects to cut costs and maintain profit growth.
While other banks too had automated part of their mortgage processing function or other areas of their operations, Mr Rowland claimed ANZ was the industry leader in "end-to-end" transformation.
Apart from cost reduction, Mr Rowland said the new platform would enable better management of higher mortgage volumes, as well as deliver new products more quickly.
The automation part of the project, involving greater use of imaging rather than paper processing to digitise the mortgage process, will absorb most of the $70 million.
But ANZ will also use so-called Six Sigma** management techniques to make the process more efficient and reduce multiple handling of documents.
The time taken to fully process a mortgage from application to settlement of funds in the customer's account will be cut from up to a week*** to two days.
Source The Australian IT
By Richard Gluyas
May 15, 2007
** Six Sigma is a system of practices originally developed by Motorola to systematically improve processes by eliminating defects. Defects are defined as units that are not members of the intended population. Since it was originally developed, Six Sigma has become an element of many Total Quality Management (TQM) initiatives.
Source Wikipedia
*** Where does the writer get the statistic to quote a mortgage can be processed in a week from application to money in the account. I have been doing conveyancing for long enough to know a furphy when I see one!!
The $70 million program will enable ANZ to offshore a "small" proportion of around 900 back-office jobs in the mortgage area to Bangalore in India, where the bank has its own facility.
In the half-year to March, ANZ gave up four basis points of home-lending margin at a cost to group profit of $40 million.
"We have to get a lot of that back," ANZ managing director mortgages Michael Rowland said.
"We're still working through how much we will get back, but there's a reasonable amount of cost savings in it."
As lending volume turns down and competition intensifies, the big banks are increasingly looking to offshoring and big-ticket information technology projects to cut costs and maintain profit growth.
While other banks too had automated part of their mortgage processing function or other areas of their operations, Mr Rowland claimed ANZ was the industry leader in "end-to-end" transformation.
Apart from cost reduction, Mr Rowland said the new platform would enable better management of higher mortgage volumes, as well as deliver new products more quickly.
The automation part of the project, involving greater use of imaging rather than paper processing to digitise the mortgage process, will absorb most of the $70 million.
But ANZ will also use so-called Six Sigma** management techniques to make the process more efficient and reduce multiple handling of documents.
The time taken to fully process a mortgage from application to settlement of funds in the customer's account will be cut from up to a week*** to two days.
Source The Australian IT
By Richard Gluyas
May 15, 2007
** Six Sigma is a system of practices originally developed by Motorola to systematically improve processes by eliminating defects. Defects are defined as units that are not members of the intended population. Since it was originally developed, Six Sigma has become an element of many Total Quality Management (TQM) initiatives.
Source Wikipedia
*** Where does the writer get the statistic to quote a mortgage can be processed in a week from application to money in the account. I have been doing conveyancing for long enough to know a furphy when I see one!!
Standards win for property market
A NATIONWIDE electronic platform for real estate conveyancing is a step closer following an agreement by the Lending Industry XML Initiative (LIXI) to develop common data standards.
National Electronic Conveyancing Office executive director Simon Libbis said LIXI's involvement was crucial for the project's success.
"It is invaluable to have data standards that are consistent with those currently used in mortgage processing," Mr Libbis said. "We are very pleased to have LIXI's expertise available to us for e-conveyancing."
NECO is a co-operative venture between state government agencies, conveyancers, banks and independent mortgage processors, which aims to build an electronic exchange by 2010.
The platform will provide a convenient means of handling changes in property ownership, payment of government duties, and lodging details with state land registries.
LIXI was set up in 2000 as a non-profit industry group with the aim of developing software standards for data exchange across the lending market.
LIXI chief executive Socrates Vasiliadis said the agreement validated the group's work and delivered value to members.
"This project will change the way transfers of property ownership are managed, and simplify the settlement process," he said.
The Australian IT Section
Karen Dearne
MAY 15, 2007
National Electronic Conveyancing Office executive director Simon Libbis said LIXI's involvement was crucial for the project's success.
"It is invaluable to have data standards that are consistent with those currently used in mortgage processing," Mr Libbis said. "We are very pleased to have LIXI's expertise available to us for e-conveyancing."
NECO is a co-operative venture between state government agencies, conveyancers, banks and independent mortgage processors, which aims to build an electronic exchange by 2010.
The platform will provide a convenient means of handling changes in property ownership, payment of government duties, and lodging details with state land registries.
LIXI was set up in 2000 as a non-profit industry group with the aim of developing software standards for data exchange across the lending market.
LIXI chief executive Socrates Vasiliadis said the agreement validated the group's work and delivered value to members.
"This project will change the way transfers of property ownership are managed, and simplify the settlement process," he said.
The Australian IT Section
Karen Dearne
MAY 15, 2007
Sunday, May 13, 2007
Young Lawyers Journal - Climate Change Issue
The Young Lawyers Section of the Law Institute of Victoria devoted an entire edition to addressing the monumental questions of climate change. The editors published a contribution
Conveyancing - its impact on climate change
Paper feeds the conveyancing and mortgage industry. We know we feel a pang of guilt when we hit the print button or copy and collate five times the 100 page vendor statement for the sale of another apartment in Southbank. The agent then makes further copies to hand out to prospective buyers. There just seems to be an insatiable cycle of wasted paper in the endless grind of the property and mortgage industry. In Victoria, it is a sobering to think that residential conveyancing consumes at least 52 km of paper every year.
By comparison, former federal Human Services Minister Joe Hockey said his department would look at destroying 275km of paper records held by Centrelink and three square kilometres of Medicare records as part of the access card project to digitise all its paper-based records.
The National Electronic Conveyancing System is coming and that will mean no more physical settlements and no more over-the-counter stamping and registration of the transfer and mortgage. But this will not put an end to the paper warfare. We will still have the requirement of the vendor statement, the contract of sale, the mortgage and documenting the loan contract.
But can we change? What changes can we make, collectively, as an industry to reverse the trend? The legal office is often just a great big paper processing machine. It receives, files, retrieves, creates, file notes, collates, copies, distributes and archives paper - piles of it. While the term the "paperless office" was coined in the 80s with the advent of the PC and the word processor, these tools actually spurred an addiction to paper. We now have the tools available to create "digital paper". PDF technology is the new environmentally-friendly digital paper.
Can we make conveyancing and mortgage processing an entirely digital process, not unlike share trading and the money markets that turnover billions daily? The answer is an emphatic Yes.
Canada and New Zealand may have led the way for electronic registration of land dealings, but Victoria is leading the way forward for online electronic settlements. A Victorian-based company 247legal.com.au has developed the first web-based delivery of vendor statements and contract documentation. The system is fully automated and saves time and money. Our firm has been using the systems for the past 24 months. True to the firm's roots to develop an ethically-based conveyancing practice, it does not possess a photocopier. Our costs are down and our revenues have grown exponentially.
The company 247legal.com.au provides an excellent forum to develop the concepts of digital conveyancing. The vendor disclosure concepts are well and truly proven. The next step would be having the purchaser electronically acknowledge receipt of the vendor statement, without actually ever having to print and physically sign the document.
There are not really any regulatory barriers to doing this, just years of entrenched practices of vendors and buyers signing physical documents. Introducing such changes is beyond the efforts of any individual. What is required is a quorum of lawyers to get together and initiate change. A group of like-minded young lawyers seeking change would be the ideal forum.
If we really want to stretch the boundaries and remove an even bigger environmental footprint, we should tackle the mortgage industry head on. The lack of communication is the problem. What needs to be done? Financial institutions must give lawyers and conveyancers:
• online tracking of client's mortgage status;
• online booking of settlements;
• online advice of available funds; and
• online settlement cheque details.
Lawyers unfortunately are locked into systems that see great swathes of forests disappearing for the wood chip industry for paper manufacture. And for what? Once the property transaction has settled, the transfer and mortgage are registered, money banked, who ever looks at the file again?
The article was put together by Brett Hayton, Jaci Wang and Michael Jellis of Hayton Kosky Lawyers.
Young Lawyers Journal Issue 36 April 2007
Editors Judd Young, White Cleland and Adam Bushby, Nicholls Legal
Conveyancing - its impact on climate change
Paper feeds the conveyancing and mortgage industry. We know we feel a pang of guilt when we hit the print button or copy and collate five times the 100 page vendor statement for the sale of another apartment in Southbank. The agent then makes further copies to hand out to prospective buyers. There just seems to be an insatiable cycle of wasted paper in the endless grind of the property and mortgage industry. In Victoria, it is a sobering to think that residential conveyancing consumes at least 52 km of paper every year.
By comparison, former federal Human Services Minister Joe Hockey said his department would look at destroying 275km of paper records held by Centrelink and three square kilometres of Medicare records as part of the access card project to digitise all its paper-based records.
The National Electronic Conveyancing System is coming and that will mean no more physical settlements and no more over-the-counter stamping and registration of the transfer and mortgage. But this will not put an end to the paper warfare. We will still have the requirement of the vendor statement, the contract of sale, the mortgage and documenting the loan contract.
But can we change? What changes can we make, collectively, as an industry to reverse the trend? The legal office is often just a great big paper processing machine. It receives, files, retrieves, creates, file notes, collates, copies, distributes and archives paper - piles of it. While the term the "paperless office" was coined in the 80s with the advent of the PC and the word processor, these tools actually spurred an addiction to paper. We now have the tools available to create "digital paper". PDF technology is the new environmentally-friendly digital paper.
Can we make conveyancing and mortgage processing an entirely digital process, not unlike share trading and the money markets that turnover billions daily? The answer is an emphatic Yes.
Canada and New Zealand may have led the way for electronic registration of land dealings, but Victoria is leading the way forward for online electronic settlements. A Victorian-based company 247legal.com.au has developed the first web-based delivery of vendor statements and contract documentation. The system is fully automated and saves time and money. Our firm has been using the systems for the past 24 months. True to the firm's roots to develop an ethically-based conveyancing practice, it does not possess a photocopier. Our costs are down and our revenues have grown exponentially.
The company 247legal.com.au provides an excellent forum to develop the concepts of digital conveyancing. The vendor disclosure concepts are well and truly proven. The next step would be having the purchaser electronically acknowledge receipt of the vendor statement, without actually ever having to print and physically sign the document.
There are not really any regulatory barriers to doing this, just years of entrenched practices of vendors and buyers signing physical documents. Introducing such changes is beyond the efforts of any individual. What is required is a quorum of lawyers to get together and initiate change. A group of like-minded young lawyers seeking change would be the ideal forum.
If we really want to stretch the boundaries and remove an even bigger environmental footprint, we should tackle the mortgage industry head on. The lack of communication is the problem. What needs to be done? Financial institutions must give lawyers and conveyancers:
• online tracking of client's mortgage status;
• online booking of settlements;
• online advice of available funds; and
• online settlement cheque details.
Lawyers unfortunately are locked into systems that see great swathes of forests disappearing for the wood chip industry for paper manufacture. And for what? Once the property transaction has settled, the transfer and mortgage are registered, money banked, who ever looks at the file again?
The article was put together by Brett Hayton, Jaci Wang and Michael Jellis of Hayton Kosky Lawyers.
Young Lawyers Journal Issue 36 April 2007
Editors Judd Young, White Cleland and Adam Bushby, Nicholls Legal
Print Less - The Green PDF
PDF documents are an environmentally friendly way to communicate, but only if you don’t click the Print button. "Print Less" is an awareness campaign by the lads at GreenPDF.com The message from GreenPDF is Reducing Greenhouse Gas Emissions One Ream at a Time.
247Legal has always been committed to the concept of digital conveyancing to make conveyancing faster, simpler and greener. An original idea was to make the Vendors Statement available to the public by a simple search at the web site 247legal.com.au Simple. Anyone can search, view or download the Section 32, copy of the title, the plan of subdivision etc. But you can't print it. The ability to print the PDF had been disabled. No printing allowed. If someone wants a print version they need to contact the estate agent to obtain a print copy. The result - less paper being consumed. And in many cases such as apartments, there can be vendor statements that are 100+ pages in length. Yet the buyer may only be interested in one or two specific pages in the Plan Subdivision. It makes complete sense to deliver the information digitally rather than printing and distributing multiple copies of the paper document.
Remember Print Less.
247Legal has always been committed to the concept of digital conveyancing to make conveyancing faster, simpler and greener. An original idea was to make the Vendors Statement available to the public by a simple search at the web site 247legal.com.au Simple. Anyone can search, view or download the Section 32, copy of the title, the plan of subdivision etc. But you can't print it. The ability to print the PDF had been disabled. No printing allowed. If someone wants a print version they need to contact the estate agent to obtain a print copy. The result - less paper being consumed. And in many cases such as apartments, there can be vendor statements that are 100+ pages in length. Yet the buyer may only be interested in one or two specific pages in the Plan Subdivision. It makes complete sense to deliver the information digitally rather than printing and distributing multiple copies of the paper document.
Remember Print Less.
Missent to Belgium
Australia Post: Caulfield - Belgium - Bentleigh. Having written off the possibility of receiving a package from a client enclosing an original will, original death certificate, etc. Australia Post finally came through with the goods, having crossed at least 2 continents!
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